CTL Strategies ranked in Chambers Global Guide 2024
CTL Strategies has been ranked in the Chambers Global Guide 2024, published by Chambers and Partners.
The new edition of the Global Guide highlighted CTL for its considerable market respect in tax matters, and demonstrating strength in litigation and corporate services. Among responses received from interviewees, Chamber and Partners quoted that the firm is “able to handle complex matters and provide unbiased legal advice.”
Chambers and Partners is an independent research firm that operates in 200 jurisdictions and is commonly referred to as the “gold standard” in the legal profession. Chambers and Partners publishes rankings and information on the world’s top lawyers and law firms. In-depth interviews with lawyers, in-house counsel for clients, and independent experts were used to compile the rankings.
Regulation on Money Changing Businesses
On 1 October 2024, the Regulation on Money Changing Businesses1(the “Regulation”) was published by the Maldives Monetary Authority (the “MMA”), coming into immediate effect. The Regulation repeals the previous regulation2 (the “Repealed Regulation”) and updates the rules and criteria applicable to the issuance of money changing licences.
Under the Regulation, only the following entities may provide money changing services without a money changing licence issued by the MMA:
Save for the exceptions specified above, only entities with a money changing licence issued by the MMA may provide money changing services.These licences are split into two types.
Types of Money Changing Licences
Summarised breakdown of the types of money changing licences:
Implications for Tourist Establishments
Pursuant to the Regulation, parties registered under the Tourism Act can carry out foreign currency exchange operations under any of the following routes:
Compliance Officer
The businesses issued a money changing licence under the Regulation must assign a compliance officer to ensure they are acting in accordance with the rules established in the Prevention of Money Laundering and Terrorism Financing Act and other relevant laws and regulations.
Existing Licenced Entities
Entities currently conducting money changing businesses in the Maldives under a licence issued by the MMA pursuant to the Repealed Regulation must apply for a Tier 1 or Tier 2 Money Changing Licence within 2 months from the date that the Regulation becomes effective (i.e. before 1 December 2024). Failure to apply for a licence under the new Regulation within this period will result in the automatic cancellation of their existing licences upon expiry of this period.
The businesses licensed under the Repealed Regulation can continue operations under their old licence after applying for new licences under the Regulation. The validity of the old licence will expire once the MMA makes a decision on the application for the new licence.
New Licences
On 2 October 2024, MMA published an announcement6 with regards to the application for licences under the Regulation. As per said announcement, only 50 entities will be issued new licences to conduct money changing businesses. The deadline for entities seeking to obtain new licences is 30 November 2024.
Compliance Requirements
The Regulation further introduces extensive compliance requirements and reporting obligations for licensed money changers.
Directors of the licensed money changers are required to meet competency requirements stipulated by the MMA.
Penalties
Where the MMA has determined foreign exchange rates with respect to a foreign currency, the MMA is empowered to impose the following penalties to any parties buying or selling such foreign currency at a different rate or gaining any benefits or commissions from such transactions.
Effective Date
The Regulation is effective from 1 October 2024.
Regulation on Foreign Currency
On 1 October 2024, the Regulation on Foreign Currency was published by the Maldives Monetary Authority (MMA) and came into immediate effect, repealing the long-standing Monetary Regulation in operation since 1987.
The Regulation introduces significant new rules over incomes received in foreign currency and overarching new controls over foreign currency transactions. Further, the Regulation also includes provisions that empower the MMA to closely monitor income received in foreign currencies.
This Client Advisory explains the new rules and compliance requirements introduced under the Regulation.
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